Question
Extracts from cost information of Herb Corp.: Simple L3 Pack Complex L7 Pack Total Setup cost allocated using direct labor-hours $18,750 $6,250 $25,000 Setup cost
Extracts from cost information of Herb Corp.: Simple L3 Pack Complex L7 Pack Total Setup cost allocated using direct labor-hours $18,750 $6,250 $25,000 Setup cost allocated using setup-hours $13,300 $11,700 $25,000 Under traditional costing, if direct labour hours are used instead of setup hours, L3 Pack setup costs are overcosted by:
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Management Accounting For Business
Authors: Colin Drury, Mike Tayles
8th Edition
1473778808, 978-1473778801
